Sunday, January 5, 2014

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Bitcoin research is becoming more and more usefull as a research team led by Princeton faculty is designing a prediction market — in which parties predict the likelihood of future events — underpinned by Bitcoin transactions.

Prediction markets function like stock markets, with participants trading shares. These shares have payoffs that are tied to the outcome of real-world events. For instance, a share may pay out $1 if a particular candidate wins the next presidential election.